Self-assessed service tax cannot be reopened through refund proceedings, and a delayed claim was time-barred.

A refund claim under the service tax regime cannot be used to reopen a self-assessment or re-determine tax liability where the assessee had paid tax on self-assessment and never sought modification of that assessment through the prescribed procedure. Refund proceedings under section 11B, as applied by section 83 of the Finance Act, 1994, are limited in nature and do not permit alteration of an existing assessment. The claim was also filed more than one year after payment, making it time-barred under section 11B. The rejection of the refund was therefore upheld.

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Issues: Whether a refund claim in service tax can be granted on the basis that tax paid under self-assessment was not payable when the self-assessment was never modified and the refund application was filed beyond the statutory period.

Analysis: The appellant had rendered taxable services, self-assessed service tax, paid the tax, and filed returns without claiming the exemption notification at the relevant stage. The refund claim was filed under section 11B of the Central Excise Act, 1944 as made applicable to service tax by section 83 of the Finance Act, 1994, after more than one year from payment. The governing principle applied was that refund proceedings do not permit re-determination of liability or alteration of an existing assessment, including self-assessment. A self-assessed return continues to operate as assessment unless it is modified through the procedure prescribed by law, and refund proceedings are only in the nature of execution proceedings. On that basis, the earlier self-assessment could not be reopened or changed in refund proceedings, and the claim was also beyond the limitation period under section 11B.

Conclusion: The refund claim was not maintainable, and the rejection of refund was upheld.

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